Indecision Candlestick Pattern dragonfly doji ~ forex market hours sunday
Dragonfly doji
The candlestick pattern dragonfly doji is a formation that is not frequently, but when it happens it often presages a turnaround in prices as it shows that prices dipped but then recovered to opening levels.
Dragonfly doji has the open, high and close are equal and the low creates a long lower shadow. We have that Dragonfly is a candlestick looks like a "T" with a long lower shadow and no upper shadow. Dragon fly fly doji shows that sellers control trading and drive prices lower during the session.
But, by the end of the session, buyerss are able to overturn the prices high to the level of the opening.
Why we consider dragonfly as a pattern of indecision in the market?
Because pattern dragonfly doji depends on previous price action and future confirmation of the forecast.. The long lower shadow indicates a buying pressure, but the low shows that many sellers still crontrol the market. After a downtrend, long black candlestick or at support, a dragonfly doji could indicate a potential bullish reversal or bottom. After a uptrend, long white candlestick or at resistance, the long lower shadow could foreshadow a potential bearish reversal or top. Bearish or bullish confirmation is required for both conditions.
We agree with the interpretation that dragonfly doji is a indecision pattern.
Dragonfly Doji Candlestick Pattern Quiz
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